THE OCCUPY WALL Street (OWS) movement, which has now spread to a number of cities across the United
States, will test both public and private entities when claims start rolling in, says one
risk-management expert.

While most cities are accustomed to
demonstrations, they may not be prepared
for an ongoing movement like OWS, says
Lori Seidenberg, a member of the Risk and
Insurance Management Society’s board of
directors, who serves as board liaison to the
society’s Standards & Practices Committee.

“Something like this could not have beenanticipated by any risk manager,” she says.“I know there is always a chance of a gather-ing in a park, but I don’t think a prolongedoccupation was on anybody’s radar.”Seidenberg, also vice president of en-terprise risk management for CenterlineCapital Group in Manhattan, notes thatwhile the perception is that Zuccotti Parkis a public space, it is owned by a privateorganization. “I can’t think that even [theowners] thought this would happen,” shesays, pointing out that at any time, they“can technically pull the plug on this.”The reason they haven’t, she says, isthat the owners don’t want a negative out-come or to appear to be unsympathetic tooccupiers, “even though it’s causing thema lot of grief.”As well as impacting the park itself, shesays the protest has a significant impact onlocal businesses. For example, even thoughportable toilets are set up, there are notenough of them, meaning that protestersfrequently request the use the facilities ofnearby shops and restaurants.

This creates more potential for injurieson their premises and for loss of income,Seidenberg says, adding, “I know a lot ofbusinesses down there are hurting becausethe usual Wall Street regulars who eat in therestaurants are staying away. So they havecontingent business-interruption loss.”Even though those businesses may belosing money, their losses most likely wouldnot be covered by their insurance policies,she explains, as the loss is not the result ofgovernment or civil authority action.

ers are responsible for,” Seidenberg says.

“And you have to prove some level of negligence as well. But if this is something that
can’t be anticipated, then you can’t really establish negligent or sudden and accidental.”
“I definitely think there is going to be
subrogation potential, and they will pursue subrogation to recoup costs—not just
for lawsuits, but to maintain the park, and
after they leave, to clean it up,” she says,
noting that the OWS site has become a
tent city that boasts a medical tent, media
tent and food tent, among others.

She adds that some local residents are
also having trouble. “I’ve heard of cases
where the protesters have damaged personal property. I also understand there have
been confrontations [between protesters
and local residents],” she says.

Public workers also are at risk. “The
police who are there are being subjected
to [conflicts] day after day. Their public
health and safety is in question,” she says.

“I think you’ll start to see lawsuits coming from the people occupying Wall Street
as well, and at what point do you determine liability?” she asks. “Is it something
they caused themselves, or was there an
expectation that the police would protect
them from certain [risks]?” NU